Latest GM measures 'an important step:' White House
New GM cost-cutting measures including restructuring 27 billion dollars in debt by offering a swap of common stock for bonds mark "an important step" in the troubled US auto giant's bid for survival, the White House said Monday.
By Agencies |
WASHINGTON: New GM cost-cutting measures including restructuring 27 billion dollars in debt by offering a swap of common stock for bonds mark "an important step" in the troubled US auto giant's bid for survival, the White House said Monday.
"Today's bond exchange filing represents an important step in GM's effort to restructure its company," the Presidential Task Force on the Auto Industry said in a statement.
The task force established by new US President Barack Obama amid a potential collapse of the country's Big Three automakers -- General Motors, Chrysler and Ford -- said the plan laid out by GM "reflects the work GM has done since March 30 to chart a new path to financial viability."
"We will continue to work with GM's management as it refines and finalizes this plan and with all of GM's stakeholders to help GM restructure consistent with the president's commitment to a strong, vibrant American auto industry."
General Motors announced stepped-up cost-cutting plans Monday that include an additional 7,000 to 8,000 production job cuts and the phasing out of the Pontiac brand.
The automaker, which is working on a new viability plan to get an extension of US government aid, also said it would seek to restructure its debt by offering a swap of common stock for bonds.
GM said these and other actions would "speed the reinvention of GM's US operations into a leaner, more customer-focused, and more cost-competitive automaker."
GM said bondholders would own 10 percent of GM after successful exchange offer. But without this deal and other concessions, GM said it would seek bankruptcy protection.
"We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and chief executive.
The president's auto task force said the administration meanwhile "has made no final decision regarding the treatment of its current loan to GM or with respect to any future investments in the company."
"Today's bond exchange filing represents an important step in GM's effort to restructure its company," the Presidential Task Force on the Auto Industry said in a statement.
The task force established by new US President Barack Obama amid a potential collapse of the country's Big Three automakers -- General Motors, Chrysler and Ford -- said the plan laid out by GM "reflects the work GM has done since March 30 to chart a new path to financial viability."
"We will continue to work with GM's management as it refines and finalizes this plan and with all of GM's stakeholders to help GM restructure consistent with the president's commitment to a strong, vibrant American auto industry."
General Motors announced stepped-up cost-cutting plans Monday that include an additional 7,000 to 8,000 production job cuts and the phasing out of the Pontiac brand.
The automaker, which is working on a new viability plan to get an extension of US government aid, also said it would seek to restructure its debt by offering a swap of common stock for bonds.
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GM said these and other actions would "speed the reinvention of GM's US operations into a leaner, more customer-focused, and more cost-competitive automaker."
GM said bondholders would own 10 percent of GM after successful exchange offer. But without this deal and other concessions, GM said it would seek bankruptcy protection.
"We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and chief executive.
The president's auto task force said the administration meanwhile "has made no final decision regarding the treatment of its current loan to GM or with respect to any future investments in the company."
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